Akorn to buy pharma firm for $640 million

Akorn Inc. said today it would buy pharmaceutical firm Hi-Tech Pharmacal Co. for $640 million in cash.

"This is a transformative event for our company," Raj Rai, CEO of Lake Forest-based Akorn, said in a statement. "The portfolio of Hi-Tech products is a great strategic fit to our currently marketed products as it diversifies our offering to our retail customers beyond ophthalmics to other niche dosage forms such as oral liquids, topical creams and ointments, nasal sprays and otics.

Akorn said the deal makes its position stronger "as the third-largest U.S. generic ophthalmic player."

Amityville, N.Y.-based Hi-Tech had $230 million in net sales for the fiscal year that ended April 30, 2012. Akorn had about $256.2 million in revenue in 2012. The combined company is expected to have annual revenue of more than $500 million, Akorn said.

Akorn is paying $43.50 per share, which it said it a 23.5 percent premium to yesterday's closing price.

Hi-Tech's shares were up almost 25.5 percent this morning and Akorn stock was up 11.3 percent.

Akorn said that within 12 months after the deal closes it expects "$15 million and $20 million in annual synergies" through operating efficiencies.